Gold jewellery products at Bao Tin Minh Chau Shop in Tran Nhan Tong Street, Ha Noi. — VNA/VNS Photo The Duyet

HA NOI — Domestic gold prices are currently hovering at a low of VND35 million per tael, in contrast with previous years when people used to flock to jewellery stores ahead of Tet.

Gold trading companies said the gold market had remained stable at the year-end and had not been as heated as the previous years.

Representatives from Bao Tin Minh Chau said trading at the company during the year-end had remained normal and there had been no unexpected spikes in prices as seen in previous years.

SJC also said daily transactions at the company were only about 1,000 tael and that the fillip during the year-end was insignificant.

It added that this was much lower than the previous years when daily transactions touched 10,000 tael and the figure surged by 50 per cent to 15,000 tael by the year-end.

Industry insiders attributed the stability in the gold market to stability in the country's macro-economy and the State Bank of Viet Nam's success in managing the gold market.

Earlier, whenever the economy was unstable and inflation was high, people only trusted gold investments.

Now, they are seeking investments in securities and property, and feel that simply depositing money in banks could offer them good returns, so demand for gold has dropped sharply.

Nguyen Anh Hong, a bank employee in the capital, said she used to store gold as a hedge against inflation in the past. However, this year she turned to securities as she saw them as more attractive opportunities.

According to the latest report from the World Gold Council, Viet Nam's demand for gold declined sharply quarter-on-quarter by 27 per cent in volume and 29 per cent in value during the third quarter of 2014.

The country's registered gold consumption during the third quarter reached 19 tonnes, which is worth US$783 million. Of the total, gold jewellery accounted for two tonnes, worth $82 million, a 9 per cent decline, while gold bars and coins made up for 17 tonnes, worth $701 million, reflecting a 29 per cent decline.

The council ranked Viet Nam as the world's seventh largest gold consumer last year, with consumption pegged at 92.2 tonnes worth $4.16 billion, a 20 per cent year-on-year increase.

Yesterday, domestic gold prices remained unchanged against the previous day despite a fillip in the global market.

DOJI Co. yesterday listed one tael at VND35.23/35.27 million ($1,646/1,648), while the prices quoted by Phu Quy Co and SJC were VND35.24/35.27 million and VND35.19/35.29 million per tael, respectively.

Gold prices in the domestic market are still about VND3.3 million ($154.2) higher than the global prices. — VNS